Exercise 12-3 (Algo) Indirect: Reporting cash flows from operations LO P2 Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Revenues $ 115,000 Expenses: Salaries expense 69,000 Utilities expense 31,000 Depreciation expense 32,000 Interest expense 8,300 Net loss $(25,300) Selected Year-End Balance Sheet Data Accounts receivable decrease $ 27,000 Purchased a machine for cash 21,000 Salaries payable increase 25,000 Interest payable decrease 18,000 Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current assets and liabilities $ 0 The following income statement and additional year-end information is provided. $ 2,288,000 1,121,120 1,166,880 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $313,456 Depreciation expense 54,912 Rent expense 61,776 Amortization expenses-Patents 6,864 Utilities expense 25,168 Gain on sale of equipment Net income 462,176 704, 704 9,152 713,856 $ Accounts receivable Inventory $ 39,050 increase 38,325 increase Accounts payable Salaries payable $ 12, 250 decrease 4,850 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $